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TROX (Tronox Holdings) Degree of Operating Leverage : -7.24 (As of Mar. 2025)


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What is Tronox Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Tronox Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -7.24. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Tronox Holdings's Degree of Operating Leverage or its related term are showing as below:

TROX's Degree of Operating Leverage is ranked better than
85.21% of 1521 companies
in the Chemicals industry
Industry Median: 1 vs TROX: -7.24

Tronox Holdings Degree of Operating Leverage Historical Data

The historical data trend for Tronox Holdings's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Tronox Holdings Degree of Operating Leverage Chart

Tronox Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 40.78 2.62 5.53 3.05 2.06

Tronox Holdings Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.70 13.56 -0.62 2.06 -7.24

Competitive Comparison of Tronox Holdings's Degree of Operating Leverage

For the Chemicals subindustry, Tronox Holdings's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Tronox Holdings's Degree of Operating Leverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Tronox Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Tronox Holdings's Degree of Operating Leverage falls into.


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Tronox Holdings Degree of Operating Leverage Calculation

Tronox Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 122 (Mar. 2025) / 175 (Mar. 2024) - 1 )/( 3038 (Mar. 2025) / 2916 (Mar. 2024) - 1 )
=-0.3029/0.0418
=-7.24***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Tronox Holdings  (NYSE:TROX) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Tronox Holdings Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Tronox Holdings's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Tronox Holdings Business Description

Traded in Other Exchanges
Address
263 Tresser Boulevard, Suite 1100, Stamford, CT, USA, 06901
Tronox Holdings PLC is a vertically integrated manufacturer of TiO2 pigment. It operates titanium-bearing mineral sand mines and beneficiation and smelting operations in Australia & South Africa to produce feedstock materials that can be processed into TiO2 for pigment, high-purity titanium chemicals, including titanium tetrachloride, and ultrafine TiO2 used in certain specialty applications. TiO2 and titanium feedstock, are used to produce paints and coatings, as well as plastics, paper, and printing ink. It has three pigment production facilities in the United States, the Netherlands, and Western Australia and three mining operations in Western Australia and South Africa. Europe, the Middle East, and Africa regions contribute the majority of revenue.
Executives
Jeffrey N Neuman officer: SVP, General Counsel & Sec. 115 TABOR ROAD, MORRIS PLAINS NJ 07950
Stephen J Jones director 7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195-1501
Jonathan Flood officer: Principal Accounting Officer 263 TRESSER BLVD., SUITE 1100, STAMFORD CT 06901
Jean Francois Turgeon officer: Executive Vice President 263 TRESSER BOULEVARD, STAMFORD CT 06901
John D Romano officer: SVP, Chief Commercial Officer P. O. BOX 268859, OKLAHOMA CITY OK 73126
John Srivisal officer: SVP, Business Dev. and Finance C/O TRONOX HOLDINGS PLC, 263 TRESSER BOULEVARD, SUITE 1100, STAMFORD CT 06901
Vanessa Ann Guthrie director 263 TRESSER BLVD., SUITE 1100, STAMFORD CT 06901
Mutlaq Hamad Al-morished director 263 TRESSER BLVD., SUITE 1100, STAMFORD CT 06901
Moazzam A. Khan director 263 TRESSER BLVD., SUITE 1100, STAMFORD CT 06901
Timothy C Carlson officer: Senior Vice President, CFO 263 TRESSER BOULEVARD, SUITE 1100, STAMFORD CT 06901
Sipho Abednego Nkosi director EXXARO RESOURCES LTD, P.O. BOX 9229, PRETORIA T3 0001
Raoul Charles Mancini officer: SVP, Chief HR Officer 410 PARK AVE.; SUITE 1400, NEW YORK NY 10022
Ilan Kaufthal director 143 E LINDEN AVE, ENGLEWOOD NJ 07631
Wayne A Hinman director TRONOX LIMITED, ONE STAMFORD PLAZA, 263 TRESSER BLVD., SUITE 1100, STAMFORD CT 06901
Jeffry N Quinn director 12935 NORTH FORTY DRIVE, SUITE 201, ST. LOUIS MO 63141